IFRS Vs US GAAp

1484 WordsMar 21st, 20156 Pages

IFRS vs U.S. GAAP
Victoria Harris
American Public University
Acct 610 There are two sets of accounting standards that are used worldwide. One is the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (GAAP). There is a huge desire for there to one set of accounting standards worldwide with the increase of companies performing business in many different countries and global expansion. The International Financial Reporting Standards are issued by the International Accounting Standards Board. These set of accounting standards are international in more than 110 countries and the state how certain transactions and other events should be reported in the preparation of…show more content…

Such assets include items like research and development, advertising costs, patents, trademarks, and copyrights.
One similarity between the U.S. GAAP and IFRS is that fixed assets are estimated at cost originally under both accounting standards; however, after initial recognition, differences occur between the two accounting standards. Under IFRS, after initial recognition, fixed assets are allowed to be altered to fair value. The revolution method is used to do this. This method uses the fair value on the time of assessment, less any accrued devaluation and impairment losses. This method is not used often though due to the high costs of appraisal that is involved. The U.S. GAAP values fixed assets using the cost model. This values fixed assets at historical cost, less any accrued devaluation. Fixed assets include property, plants, and equipment. How inventory costs are handled is another area in which the IFRS and U.S. GAAP differ. Under U.S. GAAP, a company can either use the last-in, first-out (LIFO) or the first-in, first-out (FIFO) inventory method. Under IFRS, the LIFO method is not allowed to be used. The advantage to having one accounting standard is enhanced comparability between countries. It also removes the need to have to adjust LIFO inventories to FIFO inventories in comparison analysis between companies that use different accounting standards. How write downs are handled is another difference

Financial Reporting under
IFRS and US GAAP
|
| | University of Economics in Prague |
| | Financial Reporting under IFRS and US GAAP |
Property, Plant and Equipment
Content
Introduction - The companies 2
Specific Questions 5
Sources 19
Introduction - The companies
AUTOMOTIVE INDUSTRY
GENERAL MOTORS as representative of U.S. GAAP
General Motors from the U.S. Detroit is, together with Toyota, the largest car manufacturer in the world. The company was established in 1908 by William C…

US GAAP versus IFRS
Due to the controversy economies have had towards which method to use for accounting, there has been a compromise to converge the two most commonly used methods – GAAP and IFRS. However, these two methods are still very different. The convergence project has yet to be completed; in the meantime, more and more countries are running towards the IFRS since it is more reliable and relevant. The main difference between these two methods is the US GAAP is rule-based while the IFRS…

IFRS vs U.S. GAAP
Victoria Harris
American Public University
Acct 610
There are two sets of accounting standards that are used worldwide. One is the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (GAAP). There is a huge desire for there to one set of accounting standards worldwide with the increase of companies performing business in many different countries and global expansion.
The International Financial Reporting Standards…

. What is PRC GAAP? |
Generally accepted accounting principles ("GAAP") of the People’s Republic of China ("PRC") come from a number of sources, majority of which represent the laws and regulations issued by the Ministry of Finance ("MOF"), and, listed company disclosures issued by the China Securities Regulatory Commission ("CSRC"). |
|
2. What is IFRS? |
International Financial Reporting Standards ("IFRS"), often known the original International Accounting Standards ("IAS"), are a set of…

Unit 9 Project: The U.S. Should Not Abandon U.S. GAAP to Adopt to IFRS
Amethyst McMillian
Kaplan University
CM220-42
Professor Manning
October 1, 2013
U.S. Adopting IFRS
The United States is coarsely going through a big dilemma. It is deciding whether to adopt International Financial Reporting Standards (IFRS), or to stay with the current U.S Generally Accepted Accounting Principles (GAAP). Since this is such a serious decision, now would be an opportune time to take a look at what…

GLASGOW CALEDONIAN UNIVERSITY
Department of Law, Economics, Accountancy & Risk
BA (Hons) Accountancy
Honours Dissertation – Year 2012/2013
Author: David Mcconnell
Title: ‘A critical analysis into the convergence of IFRS and US GAAP in the United States’
“I declare that this dissertation is my own original work and has not been submitted elsewhere, wholly or partly, in the fulfilment of the requirements of this or any other award. Academic citation standards have been maintained and…

John McCormack
June 19, 2012
Globalization: The Game Changer for GAAP and IFRS
Globalization, from a business aspect, is the process by which businesses or other organizations develop international influence or start operating on an international scale. Countries have long been involved in business; however, there is a concern regarding the lack of consistency in standards that businesses are to follow. The rapid advancement of technology and conducting business from country to country has become…

Document 1 of 75 Source: International/Financial Reporting/KPMG Guidance/IFRS GAAP Comparisons/IFRS compared to U.S. GAAP
The information contained herein is for internal and external use.
IFRS compared to U.S. GAAP
On the road to convergence About this publication Contents 1. Background 2. General issues 3. Statement of financial position 4. Specific items of profit or loss and comprehensive income 5. Special topics Appendix 1 - Abbreviations used for pronouncements Appendix 2 - IASB / FASB convergence…

9/27/11
Acct-461V
GAAP vs. IFRS
Over a decade ago, it was believed that the whole world would likely adopt the Generally Accepted Accounting Principles (GAAP). At the point in time, the International Financial reporting Standards (IFRS) was only about ten years old. In the last decade, the IFRS has been adopted in many growing countries. Currently, it is anticipated that the U.S. will converge its GAAP with the international IFRS, leaving behind only a modified IFRS. This may occur as early…